Stifel Lowers FedEx Price Target Ahead of Q1 Earnings

Core Viewpoint - Stifel has reduced its price target for FedEx to $308 from $315 while maintaining a Buy rating, citing macroeconomic pressures and consumer caution as potential challenges ahead of the company's fiscal first-quarter 2026 earnings [1]. Group 1: Market Challenges - Macroeconomic pressures, tariff uncertainty, and changes to the de minimis import rule are expected to negatively impact shipping volumes [1]. - Consumer caution may dampen the peak shipping season, further affecting demand [1]. Group 2: Cost-Cutting Initiatives - FedEx's Network 2.0 initiative presents cost-cutting opportunities, with clearer progress anticipated in the upcoming quarter [2]. - Successful execution of this initiative could help mitigate or even exceed the challenges posed by demand fluctuations [2]. Group 3: Valuation and Future Outlook - Despite the variability in earnings outcomes, FedEx's current valuation indicates an attractive risk-reward profile [3]. - There is potential for upside from an expected upcycle within the next 12 months and the planned spin-off of FedEx Freight in 2026 [3].